Equities
| US Equities
US equity research, from the S&P 500 to sectors and factors, on where stocks are heading next.
The Life and Health Insurance industry offers downside protection and portfolio diversification in the event of a market correction, surging inflation, or stubbornly high interest rates.
Imminent monetary and fiscal easing, along with resilient earnings growth, support a constructive outlook for equities. However, in the near term, significant tail risks persist. We recommend strengthening downside protection by lowering portfolio beta.
Recently, small-cap stocks have shown signs of outperformance. In this report, we examine whether the rebound is sustainable by analyzing long-term structural trends, the macroeconomic backdrop, the impact of tariffs, and other key factors.
In the front section of the chart pack, we review May’s performance and adjust our portfolio positioning.
In this report, we take stock of the Q1 2025 earnings season. Corporate commentary and forward guidance provide valuable insights into the state of the economy, tariff mitigation strategies, and consumer spending.
Markets are pricing out the worst trade policy fears, and while tariffs will still dent earnings, the impact looks smaller than initially feared. With sector rotation gaining traction and oversold names rebounding, we are adjusting our portfolio to reflect the rotation thesis.
Utilities remain a long-term structural investment theme thanks to the tailwinds from GenAI, EV, and onshoring. However, there is little upside left over the tactical investment horizon as all the positives are priced in. We close our overweight and book profits.
In the front section of the chart pack, we review April and YTD market performance, provide an update on the Q1 earnings season, examine the outlook for the Magnificent Seven, and adjust portfolio positioning.